| Description |
1 online resource (29 pages) : color illustrations |
| Series |
IMF working paper, 1018-5941 ; WP/15/41 |
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IMF working paper ; WP/15/41.
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| Contents |
Cover; Contents; 1. Introduction; 2. Background on Islamic Banking in Pakistan; 3. The 2008 Financial Panic; 4. Data Analysis and Econometric Specification; 5. Results; 5.1 Islamic vs. conventional banks; 5.2 Do bank fundamentals matter?; 5.3 Does independent information help banks?; 5.4 Bank or her (religious) depositor?; 5.5 Did the liquidity shocks affect the supply of credit?; 5.6 Robustness; 6. Conclusions; References; List of figures; 1. Demand Deposits; 2. Change in Demand Deposits during Liquidity Shock; List of tables; 1. Excess reserves as a percentage of total deposits |
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2. Summary Statistics3. Liquidity Crisis and Deposits; 4. Liquidity Crisis and Bank Credit; 5. Liquidity Crisis and Bank Credit (Robustness) |
| Summary |
Rapid growth of Islamic banking in developing countries is accompanied with claims about its relative resilience to financial crises as compared to conventional banking. However, little empirical evidence is available to support such claims. Using data from Pakistan, where Islamic and conventional banks co-exist, we compare these banks during a financial panic. Our results show that Islamic bank branches are less prone to deposit withdrawals during financial panics, both unconditionally and after controlling for bank characteristics. The Islamic branches of banks that have both Islamic and conventional operations tend to attract (rather than lose) deposits during panics, which suggests a role for religious branding. We also find that Islamic bank branches grant more loans during financial panics and that their lending decisions are less sensitive to changes in deposits. Our findings suggest that greater financial inclusion of faith-based groups may enhance the stability of the banking system.--Abstract |
| Notes |
"February 2015." |
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"Research Department and Strategy, Policy, and Review Department." |
| Bibliography |
Includes bibliographical references (pages 19-22) |
| Notes |
Online resource; title from pdf title page (IMF.org Web site, viewed March 3, 2015) |
| Subject |
Banks and banking -- Pakistan -- Religious aspects -- Islam
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Banks and banking -- Pakistan
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Financial crises -- Pakistan
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Bank deposits -- Pakistan
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Bank loans -- Pakistan
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Financial risk management -- Pakistan
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Crisis management -- Economic aspects -- Pakistan
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Bank deposits
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Bank loans
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Banks and banking
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Banks and banking -- Religious aspects -- Islam
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Financial crises
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Financial risk management
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Pakistan
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| Form |
Electronic book
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| Author |
Zaheer, Sajjad, author.
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International Monetary Fund. Research Department.
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International Monetary Fund. Strategy, Policy, and Review Department.
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| ISBN |
1484380622 |
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9781484380628 |
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